Strategic Leadership

Apple's strategy is focused on innovation. They think about and try to design the next big thing while improving and coming out with new generations of their current devices. In my opinion innovation and strategic thinking go hand-in-hand. Steve Jobs who is a co-founder of Apple in 1976 became CEO (first as a interim CEO) back in 1997. According to our textbook a top management team is anyone with status of VP or hire. Located on Apple's website it lists their executives and currently has 11 different people. Unfortunately none of them are female, but they do divide up the duties such as industrial design, Mac hardware engineering, software engineering, devices hardware, iPhone software and a few others. This division kind of relates to a heterogeneous management team because it breaks of the duties down further rather than having a VP for software and VP of hardware. The divisions are able to get more detailed and innovative as ideas move up and down the chain. Currently having a co-founder as the CEO provides benefits because in this case he is always looking forward and towards change. Jobs is dedicated to the company. Apple also has a great deal of human capital that includes the designers and engineers who are developing the new iPhones and iPads. Steve Jobs is a strategic leader and surrounds himself with other strategic leadership to continue to keep the sound image of Apple and their innovative products.

Apple's Structure

When taking a look at Apple's organizational chart one will see Steve Jobs at the top. Branching off would be Senior Vice Presidents in different areas such as Marketing, Sales, Applications, Software Engineer and so forth. From there the chart branches further into lower positions but still specialized and each divided into different areas. This chart represents a functional structure whereas a CEO is at the top followed by executive officers followed by functional line managers. Jobs was a co-founder back in the late 70s and still serves as CEO. It seems to me that there is constant flow of information back and forth between the different levels. This communication helps lead to the success and innovation of Apple.

In other news, Apple just posted their 2nd quarter earnings and had revenue of $13.5 billion and ned quarterly profit of $3.07 billion compared to revenue of $9.08 billion and net quarterly profit of $1.62 billion a year ago. They also listed that international sales accounted for 58 percent of the this quarters revenue.

Cooperative Strategies of Apple

Apple has teamed up with other organizations such as Nike, IBM, and HP to create strategic alliances. In 1991 Apple and IBM had a joint development of software to facilitate links between Apple's personal computers and IBM's personal-computer networks. They also joined with Motorola for a new set of microprocessors. IBM and Apple also established a joint venture for software design for Apple, IBM and other computers. They also established a joint venture to formulate joint standards for "multi-media" Both IBM and Apple are in a fast-cycle market where they are constantly looking for new competitive advantages. After IBM, Apple formed a strategic alliance with Intel and changed the computer industry. Together they allowed users to have Windows or Mac software on any device with an Intel processor.

Another alliance was between Apple and Nike and the development of Nike+ipod. Their goal was to combine the worlds of sports and music. The Nike+ footwear communicates with your iPod and lets you keep track of your distance, time, and calories burned.

Apple has formed other strategic alliances to help share risks and to get their products with other products that they do not produce. They use their innovation for hardware and combine it with other companies software and vice versa.

Apple's International Presence

Apple currently has business all over the globe. Most of the Apple retail stores are located in the United States but are also located in 7 other countries. The first international store opened in Japan and followed by England. With Apple having physical locations as well as having very strong online sales, the website itself provides information to every countries were sales are made. It even allows you to choose the language of the website to suit your needs.

When researching their international business, I would have to say that the majority of Apple's international trade would be exporting. When a customer orders a product online it can be shipped to that country. When I bought my computer and ipod online, the ipod its self was assembled in China. With the ability to ship products around the world, Apple increases their market and sales. Their website is very helpful for the other countries to be able to buy products off of the website that translates the products and prices into their language. I would also say that Apple has a global strategy in the sense that they offer the same products across the different markets. The decisions are made in the home office and then made available to the other locations. As of right now the iPad is only offered in the United States, but is planning on expanding in late April for some other countries.

Apple's Corporate-level Strategy

Apple's headquarters located in California uses a corporate-level strategy competing on many different levels. Apple has a moderate to high level of diversification with related constrains. Apple offers home computers, personal computers, phones, music devices, software, and applications. All of their products use very similar design techniques and the majority of the applications can be used on multiple devices without changing the format. They are also one of the few computer base companies that also own retail stores. They customers can either order online through Apple.com or go to a Apple retail store and buy the same products. All of their businesses are linked and continue to move forward at the same time.

Apple vs. PC

It is a classic debate among students and businesses alike. Do you invest in an Apple computer or a PC?

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For me it took a long time to make a decision. For the first two years of college I did not own my own computer. I would use the school's computer labs or a friend's computer to type up my assignments. One of the main reasons I did not purchase one is I did not want to spend that much money right away. Another reason, I was not sure what kind of computer or brand I wanted to buy. Every so often I would think about making a purchase so I would research different companies and compare prices. It was not until college that I got aquatinted with a Mac. I spent most of a school year learning about the features while using a friend's computer. When it came time to make a decision I went with a MacBook because of the quality and features it offered me. Yes I spent more money, but getting a free iPod was not a bad deal either.

Whether it is a Apple or a PC business such as Dell, HP, or Sony to name a few, each one of these businesses has to spend time and money on research and development because the world of technology is continually changing. One tactic Apple focuses on is marketing to the"artist" There are many programs offered on a Mac or MacBook Pro that are designed specially for a photographer, music lover, or editing software. Apple has many different competitors whether it be PC makers, cell phone providers, or music devices. In this industry there has to be constant innovation and improving the product to best fit the customer. An example of this would be to come out with new generations of the iPods with new features and even changing the design of the MacBooks from white and black to aluminum coverings to add protection. I have had my MacBook for about a year and a half now and still pleased with my purchase. In a few years I may have to invest in a new computer, mainly because things are always changing, but as far as my decision goes, I will continue to invest in Apple products.

How to be different:

I would say that Apple's business level strategy would be differentiation. Very rarely do customers switch back to PC's or generic mp3 players after owning an Apple product. They are not a cost leader because there are many other products like phones, computers, and mobile devices that are offered at a much lower price, but Apple users value the consistency of the products and the dependability. Apple spends a lot of time and money on research and development, but they outsource manufacturing because for them it is more cost efficient. Apple prides itself on innovation and just recently filed a lawsuit against HTC for infringing on 20 patents related to the iPhone. With all the applications offered to put on someone's phone or ipod, it allows one to personalize their mobile device and make it different. Apple users are willing to pay a little extra money for the added value they get from their products. Apple as a company encourages their users to be creative and offers the programs to accomplish this.

You're a Winner!

It was just yesterday that Apple had its 10 billionth iTunes download. The song- Johnny Cash's "Guess Things Happen That Way." Well for one lucky winner, I guess things do happen. The winner was a woman in Georgia who was rewarded with a $10,000 iTunes gift card. I am not sure what I would do with $10,000 iTunes card. Lets just say my music library as well as my movie collection would increase dramatically.

With people downloading iTunes songs everyday, there really is not another music player that can compete to that level. Apple is a company who is known for their value of products and features. They don't stop once somethings turns "big." They continue to work on the product to make it better and soon come out with new generations of products. They have a competitive advantage over their unique products such as the ipod, iphone, applications and programs. Apple is innovative and continues to expand their product lines as well as improving the features that go on those products.

An Apple a day...

When the word "apple" is spoken what are most people talking about. Are they discussing their fruit intake for the day or whether they prefer a red of green apple. If you are following modern times and technology, apple has a whole different meaning. Apple Inc. was founded in 1976 and has dramatically changed communication and entertainment. They are a leader in creative new ideas such as the iphone, ipod, Macbooks catered towards artistic individuals and now the new ipad. The ipad was just recently released and is a cross between a personal computer and a mobile device such as the ipod. This device may change the way some dedicated Apple users travel and conduct business. The screen is bigger than a smart phone or ipod and it weighs less than a macbook.

Apple is an international business that has strategically manufactured and designed their products for the everyday person and has 284 stores worldwide. Communication is very important and with their mobile devices, communication can be conducted anywhere. Apple does have competition with companies that produce mobile devices, but they come out on top. They are above Nokia, Sony, and Samsung. They are innovative and their sleek designs attract millions of customers worldwide.

1st Day Blogging

I have successfully set up my blog for BSAD 428. I will soon be writing about a specific company that I follow for the whole semester.